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Cell differentiation is the acquisition of a specialized cell state, involving changes in structure, function and gene expression. A neuron and a red blood cell illustrate different outcomes: signaling and oxygen transport. Different functions usually do not require a different inherited DNA sequence for each function. The shared-genome principle concerns nucleated precursors and most nucleated descendants: a mature mammalian red blood cell has lost its cell nucleus and mitochondria, so it is not an example of two mature biological cells both retaining the same nuclear DNA. ^[ref]

The puzzle is how a shared set of genes supports different jobs. Gene expression changes which RNA and proteins a biological cell produces, and in what amounts. A transcription factor can regulate several genes; different combinations of regulators can interpret the same signal differently. Stable regulatory patterns can persist through the cell cycle, providing memory of developmental history. Specialization therefore usually changes use of inherited information, rather than replacing the genome wholesale. ^[ref]

A small counting example separates sequence from activity. Suppose the same three toy genes are present in every nucleated biological cell, and independently assign each gene an on/off state. There are $2^3=8$ possible expression profiles with no DNA replacement. The figure shows only two: H and A on versus H and B on. Real gene expression is graded and coordinated, so this count illustrates possible descriptions, not a prediction of eight actual cell types. The interesting consequence is that a stable cell state can depend on how a shared record is used.

Stem cells combine self-renewal with production of differentiated descendants; progenitor cells generally have more restricted developmental options and renewal capacity. Neither term means that a biological cell must give rise to every cell type. Terminal differentiation denotes advanced specialization within a lineage, often accompanied by exit from the cell cycle. Cell fate concerns the developmental outcome of a biological cell or its descendants, whereas cell state describes its current properties. A temporary change in gene expression after signal transduction is not, by itself, proof of a new cell fate. ^[ref]

A progenitor cell is a precursor with relatively restricted differentiation potential and, generally, more limited self-renewal than a stem cell. Usage depends on the lineage and assay; an expression marker alone does not establish renewal capacity.

A stem cell can produce both renewed stem cells and differentiated descendants. Its developmental range depends on the type and setting; self-renewal does not imply unrestricted cell fate.